Honda have confirmed that Richard Branson's Virgin Group had bid for the team, giving Jenson Button a glimmer of hope that he could be on the Formula One grid this season.

The Japanese manufacturers pulled out of the sport in December because of the credit crunch and fears were growing a buyer would not be found before the season starts on 29 March. But a spokesman for Honda said: “We are negotiating with several buyers and one of these parties is the Virgin Group.” A decision on the offer is expected within days.

If the move is confirmed, it would be a welcome boost for Button, who was facing a season on the sidelines after driving for Honda last year. It would also be good news for Bruno Senna, nephew of the late Brazilian triple world champion Ayrton, who has been linked with Honda.

Any deal with Branson would appear to scupper a planned management buyout being led by the team's current chief executive Nick Fry.

Branson has been involved with Formula One before to a minor extent, his Virgin Mobile company sponsoring the Jordan team in 2002. Virgin Atlantic Japan have also been personal sponsors of Honda-backed Japanese driver Takuma Sato for the past four years. He lost his drive last year when the Super Aguri team folded.

Branson is a friend and business associate of Adrian Reynard, co-founder of the BAR team that became Honda in 2006.

Honda have struggled to raise sponsorship and spent around $300 million of their own money for scant reward last season when they finished ninth overall.